Ethereum Surges 6% in July Amid Bullish Signals

Ethereum (ETH) has recently shown signs of bullish momentum, with a 6% surge in July, driven by several key factors. The cryptocurrency, which had experienced a volatile year with a 22.7% year-over-year decline and a 45.3% drop in Q1 2025, rebounded strongly in Q2 with a 36.5% increase, largely due to a 41.1% return in May. As of July, ETH has climbed from $2,403.98 to $2,593.60, indicating renewed bullish energy.

Crypto analyst Eric Conner described Ethereum as a "powder keg," suggesting that multiple bullish signals are aligning for a potential explosive move upward. One of the key drivers is the growth of stablecoins on the Ethereum network. At its peak, stablecoins on Ethereum reached a $251 billion market cap, and currently hold $126.31 billion, with a $888.92 million increase in just seven days. Tether leads with $64.12 billion, followed by USDC at $38.10 billion and Ethena’s USDe at $5.09 billion. This consistent demand signals strong on-chain activity and confidence in Ethereum’s infrastructure.

Another significant factor is the growing interest from traditional finance in spot Ethereum ETFs. In June, these ETFs recorded over $1.17 billion in net inflows, with BlackRock’s ETHA and Grayscale’s ETHE pulling in $54.8 million and $10 million, respectively, on July 1. This trend highlights the increasing institutional interest in ETH, which is bullish for its long-term prospects.

Additionally, the supply of ETH on centralized exchanges has been steadily declining, from 19.51 million at the start of 2025 to 19.03 million now. This reduction in supply on exchanges means that buying pressure can trigger quicker price moves, setting up a crucial environment for a potential breakout. Furthermore, wallets holding 1,000 to 10,000 ETH accumulated over 800,000 ETH per day during a week in June, the most aggressive buying since 2017. This strong accumulation occurred even as ETH slipped 1.62% in June, indicating that large players are betting big on a bullish turnaround.

ETH has also shown resilience, bouncing back from recent dips and demonstrating strong bullish reactions from key demand zones. Notably, ETH jumped nearly 8% in recent trading sessions, reflecting a broader market sentiment that is optimistic about potential economic developments. The smart money, which had previously been invested in other cryptocurrencies, appears to be shifting its focus towards ETH, anticipating a significant price pump. The monthly line for October $ETH 6 has just closed, revealing a doji line. This candlestick pattern suggests a balance between bullish and bearish forces, but it also indicates that the market is at a critical juncture. A breakout from this pattern could provide clarity on the direction of ETH's price movement. Additionally, the price of ETH is moving within a descending channel on the 30-minute frame, with expectations of a breakout and continued upward movement.

Analysts have predicted that ETH is poised for a significant pump, potentially outperforming other cryptocurrencies in the near future. This optimism is driven by the growing adoption of Ethereum's technology and its role as a leading platform for decentralized applications (dApps) and smart contracts. As the market continues to evolve, ETH's bullish indicators suggest that it is well-positioned to capitalize on these trends and achieve new price highs. If ETH can flip the $2,600 resistance, a rapid price rally may follow.